May 16, 2021

Burgan’s operating profit grows 36 percent

Majed Al-Ajeel: “Burgan” continues to provide a flexible performance despite the challenges

Masoud Hayat: The bank continued its operational efficiency by focusing on cost optimization efforts

Burgan Bank announced that it recorded revenues of 48 million dinars during the first quarter of 2021, driven by growth in non-interest income, stressing that it continues to demonstrate strong discipline in reducing costs, which led to a reduction in operating expenses by 21 million dinars during the first quarter of this year (by 27 percent versus the fourth quarter of 2020).

Burgan added that these factors resulted in strong operating income of 27 million dinars (an increase of 36 percent compared to the previous quarter), explaining that credit costs decreased by about two million dinars during the first quarter of this year, compared to the previous quarter. The bank also recorded net income. With a value of 5 million dinars for the first quarter of 2021.

The bank indicated that the non-performing loan coverage ratio reached 169 percent during the first quarter, the capital adequacy ratio was 17 percent, liquidity coverage reached 152 percent, and the net stable financing ratio was 105 percent.

He added that during this quarter, Burgan continued its progress in the journey of digitization, launching the bank’s prepaid card portal and application, and also succeeded in launching the first Interactive Teller Machine (ITM) in Marina Mall to give its customers continuous access.

Commenting on these results, the Chairman of Burgan Group, Majid Issa Al-Ajeel, said that the global economy is still facing many challenges due to the Corona pandemic and the restrictions imposed due to it, expecting that the Kuwaiti economy will regain its growth momentum during the next two quarters, supported by an increase in vaccinations.

He stressed that Burgan continues to provide a flexible performance despite these challenges. In addition, the work team is making strong and remarkable progress to enhance the bank’s operating model by investing in digitalization efforts.

For his part, Vice Chairman and CEO of the Group, Masoud Hayat, said that “Burgan continues to achieve results while maintaining liquidity and capital measures at high levels despite the difficulties in the current operating environment.”

He stated that Burgan continued its operational efficiency by focusing on cost improvement efforts, indicating, “We continue to make strong and remarkable progress in digital improvements. Burgan is also working to enhance its cybersecurity framework due to the increased use of electronic channels.

The consolidated financial statements include the results of the group’s operations in Kuwait, and its share of the results of its subsidiaries, Burgan Bank Turkey, Gulf Bank Algeria, Bank of Baghdad, and Tunis International Bank.

Through this regional presence, Burgan has one of the largest regional branch networks, with 162 branches throughout Kuwait, Turkey, Algeria, Iraq, Tunisia, and Lebanon, and a representative office in the United Arab Emirates.

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